0000950170-24-009126 8-K 13 20240130 2.02 9.01 20240131 20240131 TERADYNE, INC 0000097210 3825 08 Industrial Applications and Services 042272148 MA 1231 8-K 34 001-06462 24580479 600 RIVERPARK DRIVE NORTH READING MA 01864 978-370-2700 600 RIVERPARK DRIVE NORTH READING MA 01864 TERADYNE INC 19920703 8-K 1 ter-20240130.htm 8-K 8-K
0000097210false00000972102024-01-302024-01-30

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported): January 30, 2024

TERADYNE, INC.

(Exact Name of Registrant as Specified in Charter)

Massachusetts

001-06462

04-2272148

(State or Other Jurisdiction

of Incorporation)

(Commission

File Number)

(IRS Employer

Identification No.)

 

600 Riverpark Drive, North Reading, MA

01864

(Address of Principal Executive Offices)

(Zip Code)

Registrant’s telephone number, including area code: (978) 370-2700

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading

Symbol(s)

Name of each exchange

on which registered

Common Stock, par value $0.125 per share

TER

Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.


Item 2.02 Results of Operations and Financial Condition.

On January 30, 2024, Teradyne, Inc. (“Teradyne”) issued a press release regarding its financial results for the fourth quarter ended December 31, 2023. Teradyne’s press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

 

Exhibit

Description

 

 

99.1

Press Release dated January 30, 2024.

 

 

104

Cover Page Interactive Data File (embedded within the Inline XBRL document)

 


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

 

TERADYNE, INC.

 

 

 

 

Dated: January 31, 2024

 

By:

/s/ SANJAY MEHTA

 

 

Name:

Sanjay Mehta

 

 

Title:

Vice President, Chief Financial Officer and Treasurer

 


EX-99.1 2 ter-ex99_1.htm EX-99.1 EX-99.1

 

Exhibit 99.1

Teradyne Reports Fourth Quarter and Fiscal Year 2023 Results

Revenue of $671 million in Q4'23, down 8% from Q4'22
Revenue of $2,676 million in FY 2023, down 15% from FY 2022
Record Robotics revenue in Q4'23, up 50% from Q3'23 and 17% from Q4'22

 

 

 

Q4'23

 

 

Q4'22

 

 

Q3'23

 

 

FY 2023

 

 

FY 2022

 

Revenue (mil)

 

$

671

 

 

$

732

 

 

$

704

 

 

$

2,676

 

 

$

3,155

 

GAAP EPS

 

$

0.72

 

 

$

1.04

 

 

$

0.78

 

 

$

2.73

 

 

$

4.22

 

Non-GAAP EPS

 

$

0.79

 

 

$

0.92

 

 

$

0.80

 

 

$

2.93

 

 

$

4.25

 

 

NORTH READING, Mass. – January 30, 2024 – Teradyne, Inc. (NASDAQ: TER) reported revenue of $671 million for the fourth quarter of 2023 of which $431 million was in Semiconductor Test, $86 million in System Test, $25 million in Wireless Test and $129 million in Robotics. GAAP net income for the fourth quarter was $117 million or $0.72 per diluted share. On a non-GAAP basis, Teradyne’s net income in the fourth quarter was $127 million, or $0.79 per diluted share, which excluded pension actuarial losses, acquired intangible asset amortization, restructuring and other charges, and included the related tax impact on non-GAAP adjustments.

“We closed out 2023 with Q4 revenue and profit in line with our guidance as strong demand for memory test systems and 50% quarterly growth of Robotics revenue offset weakening demand for System-on-a-Chip (SOC) test systems,” said Teradyne CEO Greg Smith. “Looking into the new year, we expect low tester utilization will impact demand in the first half of the year but anticipate the full year Semiconductor test demand to incrementally improve from 2023. In Robotics, after expected seasonal weakness in Q1, we project consistent quarterly growth powered by new products, new applications and improvements in our global distribution channels.”

Guidance for the first quarter of 2024 is revenue of $540 million to $590 million, with GAAP net income of $0.19 to $0.35 per diluted share and non-GAAP net income of $0.22 to $0.38 per diluted share. Non-GAAP guidance excludes acquired intangible asset amortization and includes the related tax impact on non-GAAP adjustments.

Webcast

A conference call to discuss the fourth quarter results, along with management’s business outlook, will follow at 8:30 a.m. ET, Wednesday, January 31, 2024. Interested investors should access the webcast at www.teradyne.com and click on "Investors" at least five minutes before the call begins. Presentation materials will be available starting at 8:30 a.m. ET. A replay will be available on the Teradyne website at www.teradyne.com/investors.

 


Page 2

 

Non-GAAP Results

In addition to disclosing results that are determined in accordance with GAAP, Teradyne also discloses non-GAAP results of operations that exclude certain income items and charges. These results are provided as a complement to results provided in accordance with GAAP. Non-GAAP income from operations and non-GAAP net income exclude acquired intangible assets amortization, restructuring and other, pension actuarial gains and losses, stock compensation modification expense, discrete income tax adjustments, and includes the related tax impact on non-GAAP adjustments. GAAP requires that these items be included in determining income from operations and net income. Non-GAAP income from operations, non-GAAP net income, non-GAAP income from operations as a percentage of revenue, non-GAAP net income as a percentage of revenue, and non-GAAP net income per share are non-GAAP performance measures presented to provide meaningful supplemental information regarding Teradyne’s baseline performance before gains, losses or other charges that may not be indicative of Teradyne’s current core business or future outlook. These non-GAAP performance measures are used to make operational decisions, to determine employee compensation, to forecast future operational results, and for comparison with Teradyne’s business plan, historical operating results and the operating results of Teradyne’s competitors. Non-GAAP diluted shares include the impact of Teradyne’s call option on its shares. Management believes each of these non-GAAP performance measures provides useful supplemental information for investors, allowing greater transparency to the information used by management in its operational decision making and in the review of Teradyne’s financial and operational performance, as well as facilitating meaningful comparisons of Teradyne’s results in the current period compared with those in prior and future periods. A reconciliation of each available GAAP to non-GAAP financial measure discussed in this press release is contained in the attached exhibits and on the Teradyne website at www.teradyne.com by clicking on “Investor Relations” and then selecting “Financials” and the “GAAP to Non-GAAP Reconciliation” link. The non-GAAP performance measures discussed in this press release may not be comparable to similarly titled measures used by other companies. The presentation of non-GAAP measures is not meant to be considered in isolation, as a substitute for, or superior to, financial measures or information provided in accordance with GAAP.

About Teradyne

Teradyne (NASDAQ:TER) test technology helps bring high-quality innovations such as smart devices, life-saving medical equipment and data storage systems to market, faster. Its advanced test solutions for semiconductors, electronic systems, wireless devices and more ensure that products perform as they were designed. Its robotics offerings include collaborative and mobile robots that help manufacturers of all sizes increase productivity, improve safety, and lower costs. In 2023, Teradyne had revenue of $2.7 billion and today employs over 6,500 people worldwide. For more information, visit teradyne.com. Teradyne® is a registered trademark of Teradyne, Inc., in the U.S. and other countries.

Safe Harbor Statement

This release contains forward-looking statements including statements regarding Teradyne’s future business prospects, financial performance or position and results of operations. You can identify forward-looking statements by their use of forward-looking words such as “anticipate,” “expect,” “plan,” “could,” “may,” “will,” “believe,” “estimate,” “goal” or other comparable terms. Forward-looking statements in this press release address various matters, including statements regarding Teradyne’s financial guidance. Investors are cautioned that such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements due to known and unknown risks, uncertainties, assumptions, and other factors. Such factors include, but are not limited to, macroeconomic factors and slowdowns or downturns in economic conditions generally and in the markets in which Teradyne operates; decreased or delayed product demand from one or more significant customers; a slowdown or inability in the development, delivery and acceptance of new products; the ability to grow the Robotics business; the impact of increased research and development spending; the impact of epidemics or pandemics such as COVID-19; the impact of a supply shortage on our supply chain and contract manufacturers; the consummation and success of any mergers or acquisitions; unexpected cash needs; the business judgment of the board of directors that a declaration of a dividend or the repurchase of common stock is not in Teradyne’s best interests; changes to U.S. or global tax regulations or guidance; the impact of any tariffs or export controls imposed by the U.S. or China; the impact of U.S. Department of Commerce or other government agency regulations relating to Huawei, HiSilicon and other customers or potential customers; the impact of U.S. Department


Page 3

 

Commerce export control regulations for certain U.S. products and technology sold to military end users or for military end-use in China; the impact of the Israel-Hamas conflict; the impact of regulations published by the U.S. Department of Commerce relating to semiconductors and semiconductor manufacturing equipment destined for certain end uses in China. The risks included above are not exhaustive. For a more detailed description of the risk factors associated with Teradyne, please refer to Teradyne’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022 and Quarterly Report on Form 10-Q for the fiscal quarter ended October 1, 2023. Many of these factors are macroeconomic in nature and are, therefore, beyond Teradyne’s control. We caution readers not to place undue reliance on any forward-looking statements included in this press release which speak only as to the date of this press release. Teradyne specifically disclaims any obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein.

 


Page 4

 

TERADYNE, INC. REPORT FOR FOURTH FISCAL QUARTER OF 2023

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

Quarter Ended

 

 

Twelve Months Ended

 

 

 

December 31,
2023

 

 

October 1,
2023

 

 

December 31,
2022

 

 

December 31,
2023

 

 

December 31,
2022

 

Net revenues

 

$

670,600

 

 

$

703,732

 

 

$

731,836

 

 

$

2,676,298

 

 

$

3,155,045

 

Cost of revenues (exclusive of acquired intangible assets amortization shown separately below) (1)

 

 

291,055

 

 

 

305,441

 

 

 

311,387

 

 

 

1,139,550

 

 

 

1,287,894

 

Gross profit

 

 

379,545

 

 

 

398,291

 

 

 

420,449

 

 

 

1,536,748

 

 

 

1,867,151

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling and administrative (2)

 

 

142,336

 

 

 

138,330

 

 

 

142,752

 

 

 

577,315

 

 

 

558,103

 

Engineering and development

 

 

102,207

 

 

 

104,413

 

 

 

108,810

 

 

 

418,089

 

 

 

440,591

 

Acquired intangible assets amortization

 

 

4,651

 

 

 

4,720

 

 

 

4,670

 

 

 

18,999

 

 

 

19,333

 

Restructuring and other (3)

 

 

6,027

 

 

 

6,856

 

 

 

(2,369

)

 

 

21,277

 

 

 

17,185

 

Operating expenses

 

 

255,221

 

 

 

254,319

 

 

 

253,863

 

 

 

1,035,680

 

 

 

1,035,212

 

Income from operations

 

 

124,324

 

 

 

143,972

 

 

 

166,586

 

 

 

501,068

 

 

 

831,939

 

Interest and other (income) expense (4)

 

 

(15,482

)

 

 

(308

)

 

 

(28,651

)

 

 

(24,504

)

 

 

(8,446

)

Income before income taxes

 

 

139,806

 

 

 

144,280

 

 

 

195,237

 

 

 

525,572

 

 

 

840,385

 

Income tax provision

 

 

22,752

 

 

 

16,164

 

 

 

22,936

 

 

 

76,820

 

 

 

124,884

 

Net income

 

$

117,054

 

 

$

128,116

 

 

$

172,301

 

 

$

448,752

 

 

$

715,501

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.77

 

 

$

0.83

 

 

$

1.11

 

 

$

2.91

 

 

$

4.52

 

Diluted

 

$

0.72

 

 

$

0.78

 

 

$

1.04

 

 

$

2.73

 

 

$

4.22

 

Weighted average common shares - basic

 

 

152,812

 

 

 

153,762

 

 

 

155,762

 

 

 

154,310

 

 

 

158,434

 

Weighted average common shares - diluted (5)

 

 

162,106

 

 

 

164,050

 

 

 

165,468

 

 

 

164,304

 

 

 

169,734

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividend declared per common share

 

$

0.11

 

 

$

0.11

 

 

$

0.11

 

 

$

0.44

 

 

$

0.44

 

 

(1)
Cost of revenues includes:

 

 

 

Quarter Ended

 

 

Twelve Months Ended

 

 

 

December 31,
2023

 

 

October 1,
2023

 

 

December 31,
2022

 

 

December 31,
2023

 

 

December 31,
2022

 

Provision for excess and obsolete inventory

 

$

5,289

 

 

$

11,728

 

 

$

11,787

 

 

$

28,358

 

 

$

31,452

 

Sale of previously written down inventory

 

 

(1,115

)

 

 

(1,198

)

 

 

(828

)

 

 

(5,161

)

 

 

(1,808

)

 

$

4,174

 

 

$

10,530

 

 

$

10,959

 

 

$

23,197

 

 

$

29,644

 

 

(2)
For the twelve months ended December 31, 2023, selling and administrative expenses included an equity charge of $5.9 million for the modification of Teradyne’s retired CEO’s outstanding equity awards in connection with his February 1, 2023 retirement.
(3)
Restructuring and other consists of:

 

 

 

Quarter Ended

 

 

Twelve Months Ended

 

 

 

December 31,
2023

 

 

October 1,
2023

 

 

December 31,
2022

 

 

December 31,
2023

 

 

December 31,
2022

 

Acquisition and divestiture related expenses

 

$

3,132

 

 

$

 

 

$

 

 

$

3,132

 

 

$

 

Employee severance

 

 

2,892

 

 

 

4,658

 

 

 

775

 

 

 

14,727

 

 

 

2,924

 

Contract termination

 

 

 

 

 

1,511

 

 

 

 

 

 

1,511

 

 

 

 

Litigation settlement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14,700

 

Gain on sale of asset

 

 

 

 

 

 

 

 

(3,410

)

 

 

 

 

 

(3,410

)

Other

 

 

3

 

 

 

687

 

 

 

266

 

 

 

1,907

 

 

 

2,971

 

 

$

6,027

 

 

$

6,856

 

 

$

(2,369

)

 

$

21,277

 

 

$

17,185

 

 


Page 5

 

(4)
Interest and other (income) expense includes:

 

 

 

Quarter Ended

 

 

Twelve Months Ended

 

 

 

December 31,
2023

 

 

October 1,
2023

 

 

December 31,
2022

 

 

December 31,
2023

 

 

December 31,
2022

 

Pension actuarial losses (gains)

 

$

2,575

 

 

$

72

 

 

$

(25,592

)

 

$

2,703

 

 

$

(25,584

)

Gain on foreign exchange option

 

 

(7,464

)

 

 

 

 

 

 

 

 

(7,464

)

 

 

 

 

(5)
Under GAAP, when calculating diluted earnings per share, convertible debt must be assumed to have converted if the effect on EPS would be dilutive. Diluted shares assume the conversion of the convertible debt as the effect would be dilutive. Accordingly, for the quarters ended December 31, 2023, October 1, 2023 and December 31, 2022, 0.2 million, 0.6 million and 1.2 million shares, respectively, have been included in diluted shares. For the twelve months ended December 31, 2023 and December 31, 2022, 0.6 million and 1.8 million shares, respectively, have been included in diluted shares. For the quarters ended December 31, 2023, October 1, 2023 and December 31, 2022, diluted shares also included 8.6 million, 9.2 million and 7.9 million shares, respectively, from the convertible note hedge transaction. For the twelve months ended December 31, 2023 and December 31, 2022, diluted shares included 8.9 million and 8.8 million shares, respectively, from the convertible note hedge transaction.

Page 6

 

CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)

 

 

 

December 31,
2023

 

 

December 31,
2022

 

Assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

757,571

 

 

$

854,773

 

Marketable securities

 

 

62,154

 

 

 

39,612

 

Accounts receivable, net

 

 

422,124

 

 

 

491,145

 

Inventories, net

 

 

309,974

 

 

 

325,019

 

Prepayments

 

 

548,970

 

 

 

532,962

 

Other current assets

 

 

37,992

 

 

 

14,404

 

Current assets held for sale

 

 

23,250

 

 

 

 

Total current assets

 

 

2,162,035

 

 

 

2,257,915

 

Property, plant and equipment, net

 

 

445,492

 

 

 

418,683

 

Operating lease right-of-use assets, net

 

 

73,417

 

 

 

73,734

 

Marketable securities

 

 

117,434

 

 

 

110,777

 

Deferred tax assets

 

 

175,775

 

 

 

142,784

 

Retirement plans assets

 

 

11,504

 

 

 

11,761

 

Other assets

 

 

38,580

 

 

 

28,925

 

Acquired intangible assets, net

 

 

35,404

 

 

 

53,478

 

Goodwill

 

 

415,652

 

 

 

403,195

 

Assets held for sale

 

 

11,531

 

 

 

 

Total assets

 

$

3,486,824

 

 

$

3,501,252

 

Liabilities

 

 

 

 

 

 

Accounts payable

 

$

180,131

 

 

$

139,722

 

Accrued employees’ compensation and withholdings

 

 

191,750

 

 

 

212,266

 

Deferred revenue and customer advances

 

 

99,804

 

 

 

148,285

 

Other accrued liabilities

 

 

114,712

 

 

 

112,271

 

Operating lease liabilities

 

 

17,522

 

 

 

18,594

 

Income taxes payable

 

 

48,653

 

 

 

65,010

 

Current debt

 

 

 

 

 

50,115

 

Current liabilities held for sale

 

 

7,379

 

 

 

 

Total current liabilities

 

 

659,951

 

 

 

746,263

 

Retirement plans liabilities

 

 

132,090

 

 

 

116,005

 

Long-term deferred revenue and customer advances

 

 

37,282

 

 

 

45,131

 

Long-term other accrued liabilities

 

 

19,998

 

 

 

15,981

 

Deferred tax liabilities

 

 

183

 

 

 

3,267

 

Long-term operating lease liabilities

 

 

65,092

 

 

 

64,176

 

Long-term income taxes payable

 

 

44,331

 

 

 

59,135

 

Liabilities held for sale

 

 

2,000

 

 

 

 

Total liabilities

 

 

960,927

 

 

 

1,049,958

 

Shareholders’ equity

 

 

2,525,897

 

 

 

2,451,294

 

Total liabilities and shareholders’ equity

 

$

3,486,824

 

 

$

3,501,252

 

 


Page 7

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)

 

 

 

Quarter Ended

 

 

Twelve Months Ended

 

 

 

December 31,
2023

 

 

December 31,
2022

 

 

December 31,
2023

 

 

December 31,
2022

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

117,054

 

 

$

172,301

 

 

$

448,752

 

 

$

715,501

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

 

23,260

 

 

 

22,861

 

 

 

92,118

 

 

 

90,763

 

Stock-based compensation

 

 

12,443

 

 

 

10,808

 

 

 

57,682

 

 

 

48,228

 

Provision for excess and obsolete inventory

 

 

5,289

 

 

 

11,787

 

 

 

28,358

 

 

 

31,452

 

Amortization

 

 

4,685

 

 

 

4,900

 

 

 

18,768

 

 

 

19,912

 

Deferred taxes

 

 

(13,616

)

 

 

(10,320

)

 

 

(37,642

)

 

 

(38,693

)

(Gains) losses on investments

 

 

(11,756

)

 

 

(1,451

)

 

 

(14,915

)

 

 

9,985

 

Retirement plans actuarial losses (gains)

 

 

2,575

 

 

 

(25,592

)

 

 

2,703

 

 

 

(25,584

)

Gains on sale of asset

 

 

 

 

 

(3,410

)

 

 

 

 

 

(3,410

)

Other

 

 

(811

)

 

 

1,621

 

 

 

(955

)

 

 

2,353

 

Changes in operating assets and liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

40,786

 

 

 

46,380

 

 

 

70,977

 

 

 

50,628

 

Inventories

 

 

(1,068

)

 

 

(11,992

)

 

 

5,327

 

 

 

(80,809

)

Prepayments and other assets

 

 

20,881

 

 

 

(46,382

)

 

 

(43,101

)

 

 

(140,713

)

Accounts payable and other liabilities

 

 

42,783

 

 

 

11,911

 

 

 

46,782

 

 

 

(60,507

)

Deferred revenue and customer advances

 

 

(7,693

)

 

 

(337

)

 

 

(57,210

)

 

 

(6,233

)

Retirement plans contributions

 

 

(1,794

)

 

 

(1,219

)

 

 

(5,492

)

 

 

(5,116

)

Income taxes

 

 

15,762

 

 

 

1,536

 

 

 

(26,921

)

 

 

(29,834

)

Net cash provided by operating activities

 

 

248,780

 

 

 

183,402

 

 

 

585,231

 

 

 

577,923

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Purchases of property, plant and equipment

 

 

(44,336

)

 

 

(34,577

)

 

 

(159,642

)

 

 

(163,249

)

Purchases of marketable securities

 

 

(24,120

)

 

 

(20,234

)

 

 

(161,906

)

 

 

(287,409

)

Proceeds from sales of marketable securities

 

 

24,438

 

 

 

8,858

 

 

 

61,401

 

 

 

268,058

 

Proceeds from maturities of marketable securities

 

 

13,595

 

 

 

40,849

 

 

 

85,042

 

 

 

222,941

 

Issuance of convertible loan

 

 

 

 

 

 

 

 

(5,000

)

 

 

 

Proceeds from life insurance

 

 

 

 

 

 

 

 

460

 

 

 

 

Proceeds from sale of asset

 

 

 

 

 

3,410

 

 

 

 

 

 

3,410

 

Net cash (used for) provided by investing activities

 

 

(30,423

)

 

 

(1,694

)

 

 

(179,645

)

 

 

43,751

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Repurchase of common stock

 

 

(50,749

)

 

 

(2,082

)

 

 

(397,241

)

 

 

(752,082

)

Payments of convertible debt principal

 

 

(23,529

)

 

 

(14,754

)

 

 

(50,264

)

 

 

(66,759

)

Dividend payments

 

 

(16,797

)

 

 

(17,133

)

 

 

(67,878

)

 

 

(69,711

)

Payments related to net settlement of employee stock compensation awards

 

 

(202

)

 

 

(183

)

 

 

(20,788

)

 

 

(33,170

)

Issuance of common stock under stock purchase and stock option plans

 

 

175

 

 

 

 

 

 

34,259

 

 

 

28,733

 

Net cash used for financing activities

 

 

(91,102

)

 

 

(34,152

)

 

 

(501,912

)

 

 

(892,989

)

Effects of exchange rate changes on cash and cash equivalents

 

 

(6,645

)

 

 

(3,529

)

 

 

(876

)

 

 

3,889

 

Increase (decrease) in cash and cash equivalents

 

 

120,610

 

 

 

144,027

 

 

 

(97,202

)

 

 

(267,426

)

Cash and cash equivalents at beginning of period

 

 

636,961

 

 

 

710,746

 

 

 

854,773

 

 

 

1,122,199

 

Cash and cash equivalents at end of period

 

$

757,571

 

 

$

854,773

 

 

$

757,571

 

 

$

854,773

 

 


Page 8

 

GAAP to Non-GAAP Earnings Reconciliation

(In millions, except per share amounts)

 

 

Quarter Ended

 

 

 

 

 

 

December 31,
2023

 

 

% of Net Revenues

 

 

 

 

 

 

October 1,
2023

 

 

% of Net Revenues

 

 

 

 

 

 

December 31,
2022

 

 

% of Net Revenues

 

 

 

 

 

Net revenues

$

670.6

 

 

 

 

 

 

 

 

 

$

703.7

 

 

 

 

 

 

 

 

 

$

731.8

 

 

 

 

 

 

 

 

Gross profit GAAP and non-GAAP

 

379.5

 

 

 

56.6

%

 

 

 

 

 

 

398.3

 

 

 

56.6

%

 

 

 

 

 

 

420.4

 

 

 

57.4

%

 

 

 

 

Income from operations - GAAP

 

124.3

 

 

 

18.5

%

 

 

 

 

 

 

144.0

 

 

 

20.5

%

 

 

 

 

 

 

166.6

 

 

 

22.8

%

 

 

 

 

Restructuring and other (1)

 

6.0

 

 

 

0.9

%

 

 

 

 

 

 

6.9

 

 

 

1.0

%

 

 

 

 

 

 

(2.4

)

 

 

-0.3

%

 

 

 

 

Acquired intangible assets amortization

 

4.7

 

 

 

0.7

%

 

 

 

 

 

 

4.7

 

 

 

0.7

%

 

 

 

 

 

 

4.7

 

 

 

0.6

%

 

 

 

 

Income from operations - non-GAAP

$

135.0

 

 

 

20.1

%

 

 

 

 

 

$

155.6

 

 

 

22.1

%

 

 

 

 

 

$

168.9

 

 

 

23.1

%

 

 

 

 

 

 

 

 

 

 

 

 

Net Income
per Common Share

 

 

 

 

 

 

 

 

Net Income
per Common Share

 

 

 

 

 

 

 

 

Net Income
per Common Share

 

 

December 31,
2023

 

 

% of Net Revenues

 

 

Basic

 

 

Diluted

 

 

October 1,
2023

 

 

% of Net Revenues

 

 

Basic

 

 

Diluted

 

 

December 31,
2022

 

 

% of Net Revenues

 

 

Basic

 

 

Diluted

 

Net income - GAAP

$

117.1

 

 

 

17.5

%

 

$

0.77

 

 

$

0.72

 

 

$

128.1

 

 

 

18.2

%

 

$

0.83

 

 

$

0.78

 

 

$

172.3

 

 

 

23.5

%

 

$

1.11

 

 

$

1.04

 

Restructuring and other (1)

 

6.0

 

 

 

0.9

%

 

 

0.04

 

 

 

0.04

 

 

 

6.9

 

 

 

1.0

%

 

 

0.04

 

 

 

0.04

 

 

 

(2.4

)

 

 

-0.3

%

 

 

(0.02

)

 

 

(0.01

)

Acquired intangible assets amortization

 

4.7

 

 

 

0.7

%

 

 

0.03

 

 

 

0.03

 

 

 

4.7

 

 

 

0.7

%

 

 

0.03

 

 

 

0.03

 

 

 

4.7

 

 

 

0.6

%

 

 

0.03

 

 

 

0.03

 

Pension mark-to-market adjustment (2)

 

2.6

 

 

 

0.4

%

 

 

0.02

 

 

 

0.02

 

 

 

0.1

 

 

 

0.0

%

 

 

0.00

 

 

 

0.00

 

 

 

(25.6

)

 

 

-3.5

%

 

 

(0.16

)

 

 

(0.15

)

Gain on foreign exchange option

 

(7.5

)

 

 

-1.1

%

 

 

(0.05

)

 

 

(0.05

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exclude discrete tax adjustments

 

3.3

 

 

 

0.5

%

 

 

0.02

 

 

 

0.02

 

 

 

(4.8

)

 

 

-0.7

%

 

 

(0.03

)

 

 

(0.03

)

 

 

(2.8

)

 

 

-0.4

%

 

 

(0.02

)

 

 

(0.02

)

Non-GAAP tax adjustments

 

1.0

 

 

 

0.1

%

 

 

0.01

 

 

 

0.01

 

 

 

(3.5

)

 

 

-0.5

%

 

 

(0.02

)

 

 

(0.02

)

 

 

4.5

 

 

 

0.6

%

 

 

0.03

 

 

 

0.03

 

Convertible share adjustment (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.01

 

Net income - non-GAAP

$

127.2

 

 

 

19.0

%

 

$

0.83

 

 

$

0.79

 

 

$

131.5

 

 

 

18.7

%

 

$

0.86

 

 

$

0.80

 

 

$

150.8

 

 

 

20.6

%

 

$

0.97

 

 

$

0.92

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP and non-GAAP weighted average common shares - basic

 

152.8

 

 

 

 

 

 

 

 

 

 

 

 

153.8

 

 

 

 

 

 

 

 

 

 

 

 

155.8

 

 

 

 

 

 

 

 

 

 

GAAP weighted average common shares - diluted

 

162.1

 

 

 

 

 

 

 

 

 

 

 

 

164.1

 

 

 

 

 

 

 

 

 

 

 

 

165.5

 

 

 

 

 

 

 

 

 

 

Exclude dilutive shares related to convertible note transaction

 

(0.2

)

 

 

 

 

 

 

 

 

 

 

 

(0.6

)

 

 

 

 

 

 

 

 

 

 

 

(1.2

)

 

 

 

 

 

 

 

 

 

Non-GAAP weighted average common shares - diluted

 

161.9

 

 

 

 

 

 

 

 

 

 

 

 

163.4

 

 

 

 

 

 

 

 

 

 

 

 

164.3

 

 

 

 

 

 

 

 

 

 

 

(1)
Restructuring and other consists of:

 

 

Quarter Ended

 

 

 

 

 

 

 

 

December 31,
2023

 

 

 

 

 

 

 

 

October 1,
2023

 

 

 

 

 

 

 

 

December 31,
2022

 

 

 

 

 

 

 

Acquisition and divestiture related expenses

$

3.1

 

 

 

 

 

 

 

 

$

 

 

 

 

 

 

 

 

$

 

 

 

 

 

 

 

Employee severance

 

2.9

 

 

 

 

 

 

 

 

 

4.7

 

 

 

 

 

 

 

 

 

0.8

 

 

 

 

 

 

 

Contract termination

 

 

 

 

 

 

 

 

 

 

1.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of asset

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3.4

)

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

 

0.6

 

 

 

 

 

 

 

 

 

0.3

 

 

 

 

 

 

 

$

6.0

 

 

 

 

 

 

 

 

$

6.9

 

 

 

 

 

 

 

 

$

(2.4

)

 

 

 

 

 

 

 

(2)
For the quarters ended December 31, 2023, October 1, 2023 and December 31, 2022 adjustment to exclude actuarial (gain) loss recognized under GAAP in accordance with Teradyne’s mark-to-market pension accounting.

 


Page 9

 

(3)
For the quarter ended December 31, 2022, the non-GAAP diluted EPS calculation adds back $0.2 million of convertible debt interest expense to non-GAAP net income. For the quarters ended December 31, 2023, October 1, 2023, and December 31, 2022, non-GAAP weighted average diluted common shares include 8.6 million, 9.2 million and 7.9 million shares, respectively, from the convertible note hedge transaction.

 

 

Twelve Months Ended

 

 

 

 

 

 

December 31,
2023

 

 

% of Net Revenues

 

 

 

 

 

 

December 31,
2022

 

 

% of Net Revenues

 

 

 

 

 

Net Revenues

$

2,676.3

 

 

 

 

 

 

 

 

 

$

3,155.0

 

 

 

 

 

 

 

 

Gross profit GAAP and non-GAAP

 

1,536.7

 

 

 

57.4

%

 

 

 

 

 

 

1,867.2

 

 

 

59.2

%

 

 

 

 

Income from operations - GAAP

 

501.1

 

 

 

18.7

%

 

 

 

 

 

 

831.9

 

 

 

26.4

%

 

 

 

 

Restructuring and other (1)

 

21.3

 

 

 

0.8

%

 

 

 

 

 

 

17.2

 

 

 

0.5

%

 

 

 

 

Acquired intangible assets amortization

 

19.0

 

 

 

0.7

%

 

 

 

 

 

 

19.3

 

 

 

0.6

%

 

 

 

 

Equity modification charge (2)

 

5.9

 

 

 

0.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations - non-GAAP

$

547.3

 

 

 

20.4

%

 

 

 

 

 

$

868.4

 

 

 

27.5

%

 

 

 

 

 

 

 

 

 

 

 

 

Net Income
per Common Share

 

 

 

 

 

 

 

 

Net Income
per Common Share

 

 

December 31,
2023

 

 

% of Net Revenues

 

 

Basic

 

 

Diluted

 

 

December 31,
2022

 

 

% of Net Revenues

 

 

Basic

 

 

Diluted

 

Net income - GAAP

$

448.8

 

 

 

16.8

%

 

$

2.91

 

 

$

2.73

 

 

$

715.5

 

 

 

22.7

%

 

$

4.52

 

 

$

4.22

 

Restructuring and other (1)

 

21.3

 

 

 

0.8

%

 

 

0.14

 

 

 

0.13

 

 

 

17.2

 

 

 

0.5

%

 

 

0.11

 

 

 

0.10

 

Acquired intangible assets amortization

 

19.0

 

 

 

0.7

%

 

 

0.12

 

 

 

0.12

 

 

 

19.3

 

 

 

0.6

%

 

 

0.12

 

 

 

0.11

 

Equity modification charge (2)

 

5.9

 

 

 

0.2

%

 

 

0.04

 

 

 

0.04

 

 

 

 

 

 

 

 

 

 

 

 

 

Pension mark-to-market adjustment (3)

 

2.7

 

 

 

0.1

%

 

 

0.02

 

 

 

0.02

 

 

 

(25.6

)

 

 

-0.8

%

 

 

(0.16

)

 

 

(0.15

)

Gain on foreign exchange option

 

(7.5

)

 

 

-0.3

%

 

 

(0.05

)

 

 

(0.05

)

 

 

 

 

 

 

 

 

 

 

 

 

Exclude discrete tax adjustments

 

(3.4

)

 

 

-0.1

%

 

 

(0.02

)

 

 

(0.02

)

 

 

(12.1

)

 

 

-0.4

%

 

 

(0.08

)

 

 

(0.07

)

Non-GAAP tax adjustments

 

(7.7

)

 

 

-0.3

%

 

 

(0.05

)

 

 

(0.05

)

 

 

(1.4

)

 

 

0.0

%

 

 

(0.01

)

 

 

(0.01

)

Convertible share adjustment (4)

 

 

 

 

 

 

 

 

 

 

0.01

 

 

 

 

 

 

 

 

 

 

 

 

0.05

 

Net income - non-GAAP

$

479.1

 

 

 

17.9

%

 

$

3.10

 

 

$

2.93

 

 

$

712.9

 

 

 

22.6

%

 

$

4.50

 

 

$

4.25

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP and non-GAAP weighted average common shares - basic

 

154.3

 

 

 

 

 

 

 

 

 

 

 

 

158.4

 

 

 

 

 

 

 

 

 

 

GAAP weighted average common shares - diluted

 

164.3